YoungUpstarts

NOVEMBER 20, 2019

They want to see that you have some unique advantage that differentiates your company from others in your industry, and they’d prefer that you have some experience in that industry, which gives you legitimate insight into the problem you’re attempting to solve. You may be able to generate revenue, but VCs want exponential growth.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

Startup Professionals Musings

JUNE 5, 2021

In startups, it is the idea that “this solution is different,” without sufficient analysis of base anchoring features, differentiation features, or no new early adopters. High valuation, low profit. The focus should always be on execution, revenue, and profits. Supply and demand ignored.

Demand 362

Demand Government Venture Capital Valuation 362

Startup Professionals Musings

SEPTEMBER 9, 2010

It’s higher risk, but higher return, to pick the big winners early, before angels have set unreasonable valuations and restrictive terms. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the angels and super-angels willing to do these deals.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

YoungUpstarts

JANUARY 29, 2020

Because of this development, many business owners are concerned about business valuation and ideas for transitioning their businesses. There are a number of trusted methods on how to value a private company , describing some of the common business valuation principles. Diversify Your Revenue & Profits. Set Yourself Apart.

Valuation 162

Valuation Revenue Differentiation America 162

ConversionXL

JULY 16, 2021

By collating key information in a framework, you’ll reduce internal feedback loops, improve collaboration, and empower consistency—which can increase revenue by 33%. . This means defining your differentiation strategy. It would water down their unique value proposition and hurt their differentiation play. .

Audience 127

Audience Framework Differentiation Software Review 127

VC Cafe

MAY 29, 2022

Snap’s stock plunged 40% last week after Evan Spigel announced the company will miss revenue targets, which raises questions about other ‘advertising powered’ social networks. Additionally, given the valuation entry points, the return upside remains quite substantial regardless of macro conditions.

Venture Capital 183

Venture Capital Early Stage Valuation Startup 183

The Equity Kicker

FEBRUARY 8, 2012

Starting with ‘customer’, unsurprisingly, the more customers and revenues a company has the more a VC will look to what they are doing to tell him or her whether the product is good. VCs without experience (which can come from either investing or operating) often struggle to differentiate between a good product and a bad one.

Technical Review 123

Technical Review Product Venture Capital Valuation 123

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. But, it is likely the major differentiator between a win and a loss whether you are selling B2B or B2C. What is your Customer Acquisition Cost?

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

The Startup Magazine

SEPTEMBER 10, 2019

Asset valuation. The concept of asset valuation may seem counterintuitive, but it is an important idea. Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. It has never paid out dividends, and clocks around $200 billion in revenue.

Founder 118

Founder Valuation Dividend Startup 118

Hippoland

JULY 24, 2016

Valuation is a nebulous topic amongst early stage startups, so I thought I’d really spell it out in detail. In short: Valuations for seed stage companies are fairly arbitrary and driven solely by supply and demand. Your startup’s valuation is not based on a proforma of your revenue.

Seed Stage 48

Seed Stage Valuation Vertical Demand 48

Startup Professionals Musings

AUGUST 8, 2016

Remember you can’t sustain a business or social cause with no revenue or profit. Be able to differentiate your offering from competitors. The best differentiation is a patent or other intellectual property that also provides a barrier to entry.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

Start Up Blog

NOVEMBER 9, 2022

1) Gaming & Entertainment: Video gaming is no small industry with an expected revenue of over $200 billion in 2022. We can expect movie studios to also enter this space, especially as video streaming eats into distribution networks – and they try and differentiate the cinema experience by making it more immersive. (2)

Valuation 48

Valuation Differentiation Distribution Video 48

Startup Lessons Learned

SEPTEMBER 22, 2008

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. The AARRR model (hence pirates, get it?)

San Francisco 167

San Francisco CPA SEM CTO Hire 167

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.).

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Duct Tape Marketing

SEPTEMBER 10, 2019

How important is finding your key differentiator in attracting buyers? What you’ll learn if you give a listen: What factors, outside of revenue, acquirers consider when evaluating companies. What the Switzerland Structure is, and what it has to do with identifying your business’s valuation.

Switzerland 65

Switzerland Entrepreneur Valuation Differentiation 65

David Teten

AUGUST 6, 2015

This allows readers to differentiate your file from all of the other files they receive, and also easily track the evolution of your document as it changes. financial statement summaries, valuation analysis, ratio analysis, etc.) HOW TO MAKE THE ENTIRE DOCUMENT READABLE. 7) Organize your tabs. once a model has been finalized.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Startup Professionals Musings

MARCH 20, 2013

In startups, it is the idea that “this solution is different,” without sufficient analysis of base anchoring features, differentiation features, or no new early adopters. High valuation, low profit. The focus should always be on execution, revenue, and profits. Supply and demand ignored.

Demand 224

Demand Green Finance Government 224

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Steve Blank

FEBRUARY 10, 2016

Keen Home appeared on the TV show, Shark Tank , in 2012, landing one of the highest valuations in the show’s history. You really have to be able to differentiate yourself when you’re sitting across the table selling someone an insurance policy. Thankfully my team members always have. If you can’t hear the clip, click here.

Silicon Valley 120

Silicon Valley Ohio Columbus Entrepreneur 120

Venture Chronicles

MAY 26, 2010

At this point it’s all paper valuation because the stock isn’t liquid so achieving an outcome is a function of executing on the business to achieve a next round of funding or selling it. Those activities cover the full spectrum and are people powered, and people cost money.

Lean 40

Lean Early Stage Valuation Startup 40

Lightspeed Venture Partners

SEPTEMBER 21, 2013

to fund the company at a $6M post money valuation from a number of investors including Selena Gomez. Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money.

Pre-Money Valuation 161

Pre-Money Valuation Valuation Dilution Distribution 161

ReadWriteStart

MARCH 8, 2016

The hottest open source companies are focused on big data, with companies like DataStax, Cloudera , and MongoDB bagging billion-dollar valuations as they earn ever-increasing revenues. Step away from open source entirely, however, and valuations have risen even more. Source: Hortonworks. Proprietary software’s free pass.

Software 60

Software Open Source Valuation Analytics 60

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. The market regards equity as an ownership “share” in a corporation’s income revenue stream. Importance of equity valuation. Select an appropriate valuation method.

Valuation 108

Valuation Equity Warrant Common Stock 108

Startup Professionals Musings

FEBRUARY 13, 2016

This is also the place to first mention patents and any other differentiators that put you ahead of competition. Justify funding requirements, use of funds and specify a current valuation estimate. What are your forecasts for revenue, expenses and cash flow? How big and growing is the total market and your target segment?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

MARCH 25, 2011

In startups, it is the idea that “this solution is different,” without sufficient analysis of base anchoring features, differentiation features, or no new early adopters. High valuation, low profit. The focus should always be on execution, revenue, and profits. Supply and demand ignored.

Startup 225

Startup Demand Green Government 225

Lightspeed Venture Partners

OCTOBER 22, 2012

The company has gotten off to a fast start, $150k in revenue in the first two months, with all the marketing coming from social media. This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). There was a lot of discussion about competition.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

The Startup Magazine

SEPTEMBER 12, 2019

Venture funding isn’t real validation – market traction and continued profitability and revenues are. In an industry known for its high turnover, a strong and differentiated company culture can help attract and retain talent. This approach is not possible when venture funded. . Focus on Product Development First.

Early Stage 85

Early Stage Venture Capital Bootstrapping Pre-Money Valuation 85

VC Adventure

FEBRUARY 10, 2016

Valuations are Down. In the public markets public SaaS valuations (EV/Revenue) are down 33% since January and 66% since their high in January 2014. There’s an increased focus on key metrics – especially those core metrics that drive the spend/growth curve such as LTV/CAC and months to pay back CAC.

Balance Sheet 48

Balance Sheet Valuation Metrics B2B 48

YoungUpstarts

JULY 29, 2013

But they’ll sit up and pay attention when you talk about the customers and revenues of the business. You have to be prepared for the grueling rigors of fundraising and repeated rejections, and difficult negotiations over valuation. Does the solution DIFFERENTIATE from current competitors through a UVP? ii.actual REVENUE?

Asia 207

Asia Singapore Cofounder Incubator 207

Steve Blank

JANUARY 4, 2010

Now with customers and early revenue, it was out raising its first round of venture money. In fact, Google’s offer for $15 Million was equal to the highest valuation from the venture firms. 6 initial conditions differentiate a scalable startup from a small business; Breadth of an entrepreneurs’ vision. The Web and Startups.

Hockey Stick 276

Hockey Stick Venture Capital Startup Cofounder 276

Both Sides of the Table

APRIL 25, 2011

A great recent example of this was a successful group of entrepreneurs who had created a company that will do $10-12 million in revenue at their system integration business (read: services business) in 2011 after having done $5 million or so in 2010 and $2-3 million in 2009. In a down market IP can become a huge differentiator.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

David Teten

FEBRUARY 9, 2015

The cover note should include: name, website, location, revenues (if any), detailed financing history (if any), and precise terms on which you are seeking to raise capital. If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.” Financial Overview.

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

The Equity Kicker

JANUARY 10, 2020

Maybe they’ll pivot to something great eventually, but in the interim period, the valuation goes sideways – and that’s not a good place for a VC to be. They find a niche in the market where they can grow some revenues and then they raise some more money. Plus, that’s not even the worst outcome.

Partner 68

Partner Early Stage Portfolio Metrics 68

Up and Running

APRIL 11, 2016

When asked how he figured out who his target market was, he responded, “I looked at the volume of sales in my city, from the property valuation administrator, and then looked for the ‘sweet spot.’ Cheryl Julcher of Yellow Brick Properties differentiated her brand from competitors by developing a brand of homes called Zoetic Homes™.

Reputation 60

Reputation Cofounder Naming Business Plan 60

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. How big is your startup opportunity?

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Duct Tape Marketing

AUGUST 16, 2023

06:12] Today we don’t have any way to stand out in the market or way to differentiate ourselves from our customers. And then they realized, you know, we don't have any way to stand out, you know, in the market or way to differentiate ourselves with our customers. Have you seen there is a real interest in strategy? [07:15]

Channel 64

Channel Hiring Sales Marketing 64

Business Plan Blog

DECEMBER 19, 2013

Communicate clearly—this is my idea, here is the market, this is what differentiates me from my competition, here is why I will be a financial success, and this is why you should invest in it. If you say by sales revenues, you’re done. Have something to show. A presentation with 12 slides is standard for a tech product.

Angel Investor 55

Angel Investor Exit Strategy Valuation Differentiation 55